Daycare cost per child: How Much Childcare Costs by State in the USA in 2023 | Illumine

Child care expenses are ‘crippling,’ say Boston.com readers

Readers Say

Many readers support Sen. Elizabeth Warren’s Childcare for Every Community Act.

Amy McCoy serves lunch to preschoolers at her Forever Young Daycare facility, Monday, Oct. 25, 2021, in Mountlake Terrace, Wash. The Associated Press

By Kristi Palma

March 2, 2023

Boston.com readers are stressed over child care costs, according to a Boston.com poll. A recently filed federal proposal led by Sen. Elizabeth Warren, called the Child Care for Every Community Act, could provide Bay State families relief.

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The proposal would fully subsidize child care expenses for families making less than 75% of their state’s median income and cap child care expenses for high-income families at 7% of their household income.

A Mass. family making $130,125 would pay $200 a month under the proposal, according to Warren, rather than the current average of $3,128 a month. More than half of American families would pay just $10 a day for child care.

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Of the 291 readers who responded to our poll, 71% pay for daycare, 11% pay for pre-K, and 7% pay for a nanny. Most said the costs were too high for their family.

“It’s inconceivable that the cost of child care is nearly equal to one parent’s monthly salary (and that salaries for child care workers are so low, but that’s another issue),” wrote A.R. from Ashland. “My partner and I both have good, well-paying jobs, but once we enroll in child care, we will have little to no disposable income, and our salaries will go entirely to our mortgage, utilities, and child care.”

What type of child care do you use?

Daycare

“We pay $2,000 per month per child and $3,000 per month for our infant,” wrote Michael from Burlington. “Two kids and one infant come to $7,000 per month that we are paying. It is outrageous and most days it doesn’t seem worth working for.”

Many Boston.com readers support Warren’s proposal. Ahead, Boston.com readers share their thoughts about it.

Responses have been lightly edited for clarity.

‘It would drastically help my family’

“I work from home so I don’t have any other option but to put my 18-month-old into daycare so I can work to pay for daycare and keep our health insurance for the family. With this proposal, it would drastically help my family be able to pay off other debts and live more comfortably financially.” — Kerry from Billerica, who pays $2,050 per month

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“Warren’s proposal is MUCH needed! The cost of childcare is crippling. We pay $72,000 per year for twin infants.” — Greg W. from Hyde Park, who pays $6,000 per month

“We pay $90 a day, 4 days a week. If our son is home sick, we still pay. This would be life-changing for us, especially if we are lucky enough to have another baby. While we are incredibly blessed with our son, the cost of daycare is equivalent to a second mortgage.” — Chris from Holden, who pays $1,500 per month

“I would love Senator Warren’s proposal, or something similar, to pass. We are having to take equity out of our home to pay for two kids in daycare. It is important that child care workers are paid a fair wage, but the current system is not sustainable for most people.” — Chris from Stoneham, who pays $3,700 per month

“Anything that can be done to curb these rising child care costs would be a welcome relief.” — Sean E. from Natick, who pays $4,700 per month

“While both my husband and I make good money, child care still takes over 12% of our pre-tax income. There aren’t many cheaper options, and long waiting lists make any comparison shopping a challenge. I work in healthcare and having a reliable daycare for the past few years has been essential to allow me to go to work. We feel lucky to have a spot in a great daycare (now pre-school and pre-K) for our child and that we are able to pay. However, we can’t reasonably afford a second child at these rates. I support the proposal. If you want a thriving, vibrant economy you need adults at work. In order for them to work, there needs to be affordable child care and affordable for those making less than $150,000 a year as a household.” — B. from Newton, who pays $2,210 per month (which will increase to $2,300 next year)

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“I am currently paying $16,000 per year in daycare/child care costs and that’s at only four days a week. As a single mother on a single income, this means I am unable to save money for my son for the future. I am lucky to have a stable, management-level corporate career but I still feel the financial burden of child care costs every day. I think Warren’s proposal is amazing — it would allow me to save money for my son’s future/college or have money for emergencies with my house, etc. ” — Jessica L. from Franklin, who pays $1,350 per month

“This would be absolutely life-changing for my family. We are going to welcome our second child in the summer, and I am facing the reality of spending literally 100% of my take-home pay (as a professional engineer) on child care for both children. My oldest son is a September baby, so I will have to wait an entire extra school year before he is eligible for public school. We made an intentional effort to time the birth of our second child for August, just so we would be eligible for public school one year sooner.” — Stefanie from Somerville, who pays $2,040 per month

“Paying for child care has been extremely stressful for my husband and I since we started our family. It keeps us from doing so many other things and we live paycheck to paycheck despite being contracted public workers for over a decade. If this plan passes it would relieve so much stress for my family and literally change our lives for the better, financially, physically, and mentally. ” Angela K. from North Andover, who pays $2,908 per month

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“Our daycare in Metrowest costs more than our mortgage, and it’s not even close. We’ve had to reduce our savings per month, reduce our 401k contributions, eliminate the savings for our children’s college funds, and put many other items on hold until the kids are out of daycare…just to pay for both our mortgage and our daycare. If this proposal goes through, we could finally start preparing for our future, our children’s future, and actually have money left over at the end of the month. It would change our lives.” — Eric J. of Framingham, who pays $3,935 per month

“We’re expecting our second child any day now. We currently have one child in daycare and we’re just skating by. However, we will not be able to afford the cost of care for two children. We’ve made the difficult decision that one of us is going to have to give up our career to take care of our children due to the extravagant expense of daycare. This is not an ideal situation either as our income will be cut in half. This proposal would be a godsend.” — Kristen from Weymouth, who pays $1,500 per month

“I was recently paying over $40,000 per year for two children in a center-based daycare program. They have a good program, and certainly are preparing my children for elementary school, but the costs are absurd. I support proposals for limiting and controlling costs for families, but I also know that the staff are not well compensated and this is very important to improve as well.” — Anonymous from Franklin, who pays $2,000 per month

Against the proposal

“Against it. The proposal does not fix the underlying issue. Increase child care tax credit. Those that pay more in child care receive a bigger tax credit.” — George from Boston, who pays $3,500 per month

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“Foolish, another way to pass along tax burdens. If you can’t afford to support your kids don’t look for another free federal ride. Where/ who do I contact to get my refund for my years of daycare expenses? Let’s offer them all free education and college as well.” Stephen S. from Watertown, who pays $1,800 per month

“Warren’s proposal is just completely unrealistic for daycares to operate on and pay their teachers fairly. My child is in daycare for more hours in the day than I’m at work. His daycare provides 2 meals and a snack for what I pay for. The teachers are engaged in caring for my child and teaching him. Warren’s proposal would jeopardize the level of care and safety for children.” — P.L. from Acton, who pays $2,080 per month

“Instead of just throwing entitlement spending at the problem, I’d prefer that she worked to understand the fundamental issues that make child care more expensive in this state than others to make it more affordable for everyone.” — Heath from Charlestown, who pays $3,300 per month

“People who have children should be responsible and fund the care of those children. My husband and I make decent incomes and therefore can afford daycare. Those who cannot should reconsider having children. Why do taxpayers need to foot the bill for others’ personal problems?” — Kat from Cohasset, who pays $1,400 per month

‘Sounds too good to be true’

“This sounds like a dream, but where is the funding coming from, and what does this do to the quality of child care and child care providers?” — Anonymous from Boston who pays $5,500 per month

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“Sounds too good to be true. Where will the money come from and how will it ensure appropriate pay for child care workers? Of course, I’d love to pay less! I just want to understand the details and also be sure the child care workers I trust with my child will be paid a living wage commensurate with their skills and experience.” — Tiffany K. from Boston, who pays $2,000 per month

“What Warren is proposing sounds great, but too good to be true. What is the catch? $200 per month is almost too drastic. I feel this is going to incentivize families to work less to stay under the $130k cap to get this significantly reduced cost. Will there be requirements that both parents need to work full time?” — Colleen from Westford, who pays $3,500 per month

“Yes, the price of child care feels ridiculous. You are basically paying college tuition prices for toddler care. And as a result of those prices, it is easy to see why families choose to have a parent stay home. I mean, at the prices we pay around Boston, if you have two kids in child care you need to make at least $70k in pre-tax income just to break even. So in that sense, the idea of capping the expense seems like a good idea. But, like many Warren proposals, I have concerns about the practicality. Daycares are already having a hard enough time keeping and retaining staff so how are they going to remain whole? Do we really think the companies that run these daycares are going to be ok with making less money? If there is a government subsidy who is paying for that? I have serious doubts. ” — James from Canton

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Boston.com occasionally interacts with readers by conducting informal polls and surveys. These results should be read as an unscientific gauge of readers’ opinion.

What is the Average Cost of Daycare & How To Help Pay for It

Childcare can help parents pursue their professional goals while ensuring the well-being of their children. Many parents, however, often struggle to afford the cost of childcare, according to the 10th annual Care.com “Cost of Care Report.”  For the 10th year in a row, daycare costs are on the rise^.1 As a result, parents may downsize other areas of their budgets — like vacations, leisure activities, or groceries — while they look for financial assistance and ways to get creative with their childcare budgeting and options. 

How much are parents paying for daycare, and how can they help ease their financial burden? Here are some answers. 

How much does daycare cost?

The cost of daycare can take up a sizeable portion of the family budget. In fact, U.S. families are spending an average of 27 percent of their income on childcare.¹

Of course, costs can vary depending on a child’s age. Weekly daycare cost for infants averages $284¹, while the weekly cost for daycare for a toddler is averages $268¹. Daycare costs also vary with your location, and the size and type of daycare you choose. A small daycare in the suburbs will likely cost less than a larger daycare in a big city.  

Can you get financial assistance for daycare? 

From tax credits to workplace assistance, there are a variety of financial assistance options available to help ease the financial burden of the cost of daycare, including: 

Workplace benefits 

Some workplaces offer childcare benefits, stipends, partnerships with local daycares or in-office childcare programs. Check your benefits package or ask an HR representative to see what options are available.  

Some employers also offer dependent care flexible spending accounts (DC-FSAs). These let you put a portion of your paycheck into a pre-tax spending account to use on dependent care expenses, including daycare. Putting money toward your child’s daycare expenses tax-free can help save you money in the long-term. 

If you become unable to work due to an illness or injury, there are other benefits that can help you cover the cost of childcare. For example, supplemental health benefits can provide a lumpsum payment to use as you see fit, including childcare. Disability insurance can also help protect your income as payments can be put toward childcare expenses. 

Government programs 

The federal government finances statewide programs to help offset childcare costs. Each state has its own subsidy program that manages and distributes financial assistance to parents. However, these programs tend to have strict income guidelines and vary by state, so check with your state’s guidelines for specific details and requirements. 

School subsidies 

Many colleges and universities offer subsidies to students who are parents and need childcare, with some offering childcare centers right on campus to further support their students.  

Tax credits 

In addition to workplace, government, and school programs, there are three tax credits you may be eligible for that could help subsidize the cost of child care.² 

• Child and Dependent Care tax credit: Working parents can itemize up to $3,000 in childcare expenses per child (with a $6,000 limit) using an IRS Form 2441.²  However, it’s important to note that families who use a dependent care FSA — which has a $5,000 cap — can’t claim those same expenses. They can only claim an additional $1,000 with this tax credit.³
•  Child tax credit: Eligible parents can claim a child tax credit per child. This applies to all children under 17 years of age.⁴
•  Earned Income tax credit (EITC): Low- to moderate-income parents may be eligible for the EITC, which varies depending on your income, filing status, and family size.⁵ 

Military daycare

Active service members may be eligible for military-sponsored, on-base childcare options. These options are based on a sliding fee scale, meaning the cost is adjusted based on your income. If you can’t find a military-sponsored daycare that fits your family’s needs — whether because of the distance, waitlists, or program itself — you can also apply for childcare fee assistance then put the money toward a daycare option that’s right for you. 

Sibling discounts 

Some daycares offer discounts for siblings to attend. Some daycares offer discounts for siblings to attend, which is a financial win for both the families and the daycare facilities. If you find a daycare that fits your family’s needs and has space for all of your daycare-aged children, this may be a good fit for you!  

What are some daycare alternatives?  

Traditional daycare isn’t your only childcare option. There are many forms of childcare available, and often, it’s just a matter of getting creative. Here are some options for when traditional daycare doesn’t fit your family’s needs or budget.